PERTH: The Australian sharemarket has extended losses into noon, as downbeat data causes banking and mining stocks to plunge.
At 12.05pm (AEST), the benchmark S&P/ASX200 index was down 83.1 points, or 1.44 per cent, at 5,694.1, while the broader All Ordinaries index fell 78.5 points, or 1.36 per cent, to 5,696.4.
The financial sector and mining stocks were weighing heavily on the bourse at noon, following the release of a raft of mostly downbeat economic data.
The TD Securities-Melbourne Institute inflation gauge showed the annual rate of inflation remains well below the Reserve Bank’s target range, leaving room for another interest rate cut. But economists and financial markets are predicting the central bank will hold at tomorrow’s board meeting.
Locally on Monday, the Australian Bureau of Statistics released data showing the trend figure for building approvals fell for the first time in 11 months, while the headline figure fell more than economists had expected.
Meanwhile, business indicators for the March quarter showed company gross operating profits rose in the March quarter, against analyst expectations for no change.
The RP Data Core Logic Home Value Index showed home prices fell 0.9 per cent in the month, as the housing market lets off a little steam.
